Companies Get Simplified Rules for Convertible-Debt Accounting

Companies like Lyft Inc. and Carnival Corp. that raise money by issuing debt that converts to stock options are getting simpler ways of accounting for these tools.

Businesses will be able to account for more of these devices as single instruments, the Financial Accounting Standards Board said in an update published Wednesday. The move eliminates the headaches of picking apart many convertible debt instruments and accounting for each component separately.

The current process—governed by rules that vary depending on the terms of the product—frequently trips ...